Introducing an employee benefits plan

There are several considerations when it comes to offering up new perks
By Janet Russell
|Canadian HR Reporter|Last Updated: 01/23/2017

Question:  We are a small but growing company and are thinking about implementing an employee benefits plan for the first time. How do we go about doing so?

Answer: The first step you will need to take is to determine which benefits you are able to provide employees, and what budget is available to cover the costs of the plan. When offering benefits for the first time, it is important to be as conservative as possible — it is easy to introduce additional benefits to the plan in a year or two, but very difficult to take away benefits if the costs of providing them turns out to be unsustainable.

A good starting point would be to offer basic life insurance (at least enough to cover most of the burial costs for the employee), a drug plan, and possibly some health-care coverage. Dental coverage, paramedical services and disability insurance will likely be out of budget initially. Although long-term disability (LTD) premiums are generally paid fully by the employee due to tax advantages, this is often not an appreciated benefit until the employee needs the coverage.